AT&T said the company needs to "educate the customer" on data usage, particularly in New York and San Francisco, where just three percent of smartphone users are consuming up to 40 percent of the network capacity, according to Ralph de la Vega, CEO of AT&T Mobility and Consumer Markets.

Speaking at a UBS investors conference in New York this week, de la Vega said the most high-bandwidth activity is video and audio streaming. This includes applications on Apple's (NASDAQ: APPL) iPhone that provide nonstop Internet radio.

"We need to educate the customer ... We've got to get them to understand what represents a megabyte of data," said at the conference, according to a report by the Associate Press. "We're improving all our systems to let consumers get real-time information on their data usage."

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